How much should I pay for a mobile home park?

2 Replies

Hi everyone, 

Im looking at a mobile home park for sale with 11 lots and a small house. Rents for each lot is $170/ month and house is $575. Owner said they'd sell it at $250k.

The price seems pretty high when I compare to the rental properties I've bought. I usually try to buy something based on 100x rent.

But I'm wondering since this would have much less expenses does that mean I should expect to pay more? 

What formula is usually used in pricing a mobile home park? What is considered a great deal? 

@Ben Steuart the standard I use . Is number of lots renting at this time . Not the number of lots total . Multiplied by lot rent per month . Then multiplied by 70 . This will very regionally though . But it's a good place to start . In your case seems very over priced even when you add in the stick built house . Unless the lot rents are way below market rents . Then you have no chance to bump rents up to justify the cost . One big thing I'll tell you . If you are considering investing in MHP then read the Due Diligence Manual from MHU . Self educate on this niche .